Madison Square Garden Entertainment (MSGE) - 2026 Q1 - Quarterly Results

Financial Performance - For the fiscal 2026 first quarter, the company reported revenues of $158.3 million, an increase of $19.5 million, or 14%, compared to the prior year quarter [3]. - The company experienced an operating loss of $29.7 million, an increase of $11.3 million, or 61%, compared to the prior year quarter [4]. - Adjusted operating income for the fiscal 2026 first quarter was $7.1 million, an increase of $5.2 million compared to the prior year quarter [4]. - Revenues from entertainment offerings were $131.3 million, up $16.2 million, or 14%, compared to the prior year period [6]. - Food, beverage, and merchandise revenues increased by $3.9 million, or 20%, to $22.8 million compared to the prior year period [8]. - Selling, general, and administrative expenses rose by $10.8 million, or 24%, to $56.6 million compared to the prior year quarter [10]. - The company anticipates solid growth in both revenue and adjusted operating income for fiscal 2026, driven by strong momentum in bookings [3]. Stock and Shareholder Activities - The company repurchased approximately $25 million of its Class A common stock during the fiscal 2026 first quarter, totaling approximately $205 million since the spin-off from Sphere Entertainment Co. in 2023 [12][13]. Asset and Liability Management - Total current assets increased to $264,217,000 as of September 30, 2025, up from $237,132,000 on June 30, 2025, representing an increase of approximately 11.5% [28]. - Total liabilities rose to $1,745,625,000 as of September 30, 2025, compared to $1,683,142,000 on June 30, 2025, indicating an increase of about 3.7% [28]. - Deferred revenue increased to $285,681,000 as of September 30, 2025, up from $228,642,000 on June 30, 2025, reflecting a growth of about 25% [28]. - The company reported a total deficit of $65,798,000 as of September 30, 2025, compared to a deficit of $13,300,000 on June 30, 2025, indicating a significant increase in the deficit [28]. - Accounts receivable increased to $81,184,000 as of September 30, 2025, from $66,781,000 on June 30, 2025, representing an increase of approximately 21.5% [28]. - Operating lease liabilities, current, decreased to $32,310,000 as of September 30, 2025, from $35,100,000 on June 30, 2025, showing a reduction of about 8% [28]. - The company’s retained earnings decreased to $131,380,000 as of September 30, 2025, down from $153,034,000 on June 30, 2025, reflecting a decline of approximately 14.1% [28]. Cash Flow Analysis - Net cash provided by operating activities was $19,808,000 for the three months ended September 30, 2025, compared to a net cash used of $27,359,000 in the same period of 2024 [30]. - Net cash used in financing activities was $26,077,000 for the three months ended September 30, 2025, compared to net cash provided of $38,107,000 in the same period of 2024 [30]. Operational Highlights - The Christmas Spectacular production is set to have 215 performances in the 2025 holiday season, an increase from 200 performances in fiscal 2025 [2]. - Direct operating expenses associated with entertainment offerings increased by $2.1 million, or 2%, to $88.6 million compared to the prior year quarter [7].